According to Bankrate, Inc., "70 percent of credit reports contain serious errors." PT Money, LLC claims the number of errors is closer to 79 percent. Either statistic is alarming when considering how many important life events are affected by credit reporting information. This makes it imperative for consumers to examine their credit reports frequently for errors.
Personal Information
It is common for personal information to be recorded incorrectly on credit reports. Names, addresses, telephone numbers, birth dates and social security numbers can all be incorrect on credit reports. These errors often go beyond simple misspellings and can involve completely incorrect names and addresses at which an individual never lived. When an individual's personal information is incorrect, it can be difficult for her to even obtain a copy of her credit report.
Incorrect Account Histories
Sometimes credit reports show inaccurate account history details. Account history inaccuracies may involve reporting incorrect credit limits on accounts or incorrect account balances. It is also common for account payment histories to incorrectly show late payments on some accounts. Account balances that have been paid in full are sometimes incorrectly listed as charged off.
Other People's Issues
Sometimes information can make its way onto the wrong person's credit report. An individual's credit report may show accounts that don't belong to him or loans he never took. Lawsuits that did not involve an individual can also erroneously find their way onto his credit report. Divorce can be problematic in this regard when financial responsibilities court-ordered to be paid by one spouse appear on the credit report of the other.
Old Negative Events
Laws exist that dictate how long negative accounts and events can appear on a credit report. Collections and charge-offs may appear for only seven years while bankruptcies can appear for 10 years, but it is common for accounts to remain on a credit report even after the prescribed time has expired.
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